Bitcoin's Volatile Week: New Highs, Miner Sales, and ETF Influence
Summary:
Bitcoin starts this week off on shaky ground after attaining its highest-ever weekly closure. As it grapples with selling pressure and continuous demand from spot exchange-traded funds (ETFs), even the most optimistic enthusiasts are reassessing their BTC predictions. Anticipation is high for this week's US macroeconomic data, which may influence the Federal Reserve's decisions on interest rates. Amid this, Bitcoin miners are proactively securing profits before the planned block subsidy halving in April. Despite Bitcoin reaching new all-time highs, seasoned holders are maintaining a tight grip on their assets.
Bitcoin (BTC) enters this week on an unstable footing, with its highest-ever weekly closure sealed yet still struggling to reach new peaks in the face of strong resistance. The predominant cryptocurrency finds itself in the usual back-and-forth position, grappling with significant selling pressure at crucial price points allied with persistent demand from spot exchange-traded funds (ETFs). The outcome of this battle remains to be seen throughout the week.
There has been an unexpected surge of influence from ETF buying leaving even the most optimistic BTC enthusiasts reassessing their long-term BTC/USD projections, with an increasing belief that $1 million is a rather conservative prediction. However, others caution that this fast-paced bull run could trigger an early price peak for BTC.
U.S macroeconomic data is expected to be released soon, which may dictate the Federal Reserve's imminent decisions regarding interest rates. Meanwhile, Bitcoin miners are proactive in securing profits before the block subsidy halving scheduled in April.
On March 10, Bitcoin experienced its usual level of volatility, closing at the highest point in its history. The peak of $69,000 was short-lived as BTC/USD dropped to $67,120 a few minutes later, according to data provided by Cointelegraph Markets Pro and TradingView. A quick rebound reset Bitcoin at new all-time highs during the Asia trading session on March 11.
This week, anticipation is high for the U.S. macroeconomic data, with the Consumer Price Index (CPI) print for February set to be released on March 12. This data has the potential to cause significant short-term volatility in risk assets, while Bitcoin reactions remain mixed.
The market consensus regarding inflation and Fed policy is fragmented. As market players anticipate interest rate cuts, Fed officials strive to manage these expectations. Therefore, the CPI figures and other data points will constitute an essential reference for the upcoming Fed meeting.
The market is keenly awaiting the continuation of spot ETF purchases as the new week kicks off. Amid the optimism surrounding institutional participation, last week, Cathie Wood, the CEO of ARK Invest, announced that their target of $1 million BTC price for 2023 had been fast-tracked.
With Bitcoin at new all-time highs before its next halving, miners have ramped up selling around these peaks– a unique event in Bitcoin's history. Total daily revenue peaked at $75.9 million on March 7, marking it as the second-highest ever recorded.
Despite the ongoing price discovery, seasoned Bitcoin holders have kept a tight grip on their Bitcoins. Data from Glassnode, an on-chain analytics firm, reveals that long-term holders (LTHs) have not yet reached the transfer volumes of 2021 when BTC/USD first hit $69,000.
Remember, all investments and trading moves come with risks and require thorough research and judgment before making a decision. This article does not provide any investment advice or recommendations.
Published At
3/11/2024 10:48:21 AM
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